Essar Ports' net up 15% in March quarter

Essar Ports had a net profit of Rs 104 crore in the March quarter, up 15% from the same period a year before. Net sales were Rs 413 crore, up 6% over a year.

However, total income -- comprising ports and terminal services plus sale of traded goods -- declined 37% from a year before. "There was an export obligation under sale of traded goods. Essar was to deliver some petroleum products to the client. This was a no-margin business, which we have completed and this item is nil in the March quarter profit and loss sheet," a company official told Business Standard.

The same item, which finds an entry in the expenses as purchase of traded goods, was nil in the quarter gone by (since it is a no-margin business), bringing down total expenses to a fourth from the same period last year. Which was why operating profit was, at Rs 300 crore in the quarter, up 24% from the same period a year earlier.

Earnings before interest, taxes, depreciation and amortisation in the period were up six% year-on-year, at Rs 348 crore.

The company announced having taken over Visakhapatnam Port Trust's iron ore handling complex on a Build-Operate-Transfer basis, for 30 years. Its Salaya project has got all regulatory approvals, including forest clearance.

The current capacity of 120 million tonnes is to be expanded over the coming years to 194 mt. The company has four operational port terminals, at Hazira and Vadinar on the west coast and Paradip and Visakhapatnam on the east.